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If you refinance your home, do you have to start over at 30 year mortgage again?

Discuss everything relating to mortgages

If you refinance your home, do you have to start over at 30 year mortgage again?

Postby alrigo » Thu Jun 21, 2012 3:52 am

I have been in my home 3 years and a month with a 30 yr fixed mortgage. I am thinking about refinancing for a lower rate. If I did that would I have to start over at 30 years on the mortgage or would it continue where I left off at?
alrigo
 
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby kedrick91 » Thu Jun 21, 2012 3:56 am

Your refinance loan is a new loan. That means you can choose the type of loan (Fixed Rate Mortgage or Adjustable Rate Mortgage), and the length of the loan.

Most lenders offer loans at fixed lengths (10,15, 20. 25 or 30 years). However some lenders, such as Quicken Loans, have flexible loans. Read the BIlls.com article about Quicken Loans Yourgage mortgage at http://www.bills.com/yourgage/ .

Given today's low rates many borrowers are refinancing into 15-year fixed rate mortgages at under 3%..

Evaluate your goals, the difference in the monthly payments and the overall financial savings, depending on the length of time you will stay in the home. If you want lower payments, then extend your loan. If you want to maximize your savings then choose a shorter term. Your lender will look at your DTI (debt to income ratio) and a lower term loan will have a higher payment.

I recommend that you use the Bills.com refinance calculator to compare your loan against real mortgage rates. You can get different quotes based on different goals and mortgage terms.
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby mainchin » Thu Jun 21, 2012 4:08 am

When you refinance, you are going into a new loan. Depending on the specifics of that new loan, you can be in another 30 year loan, a 15 year loan, or some other type of loan product. Interest rates are really low so I'd compare what you are paying now to what you could be paying and if you could pay more, then you could pay your loan off faster. However, I don't think I'm the best person to give you advice, I'd speak with a loan officer.

You can always use a mortgage calculator to figure out where you stand and where you will be before speaking with a loan officer. I think this is a pretty good calculator. http://alliancedirecthm.com/19-mortgage-calculators/
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby fergusson » Thu Jun 21, 2012 4:13 am

When you refinance, you are going into a new loan. Depending on the specifics of that new loan, you can be in another 30 year loan, a 15 year loan, or some other type of loan product. Interest rates are really low so I'd compare what you are paying now to what you could be paying and if you could pay more, then you could pay your loan off faster. However, I don't think I'm the best person to give you advice, I'd speak with a loan officer.

You can always use a mortgage calculator to figure out where you stand and where you will be before speaking with a loan officer. I think this is a pretty good calculator. http://alliancedirecthm.com/19-mortgage-calculators/
Absolutely yes Refinancing to lower your monthly payment is great - unless it hurts you significantly in the long run. If you're several years into a 30-year mortgage, you've paid a lot of interest but not much principal. Refinancing into a 15-year mortgage will probably increase your monthly payment, possibly to a level that you can't afford. If you start over again with a new 30-year mortgage, you're starting with almost as much principal as you had at the beginning of your current mortgage. While your new interest rate will be lower, you'll be paying it for 30 years. So your long-term savings might be insignificant or the loan might even cost you more in the long run
Wanted to learn the hardship letter fro your mortgage communication especially in dealing with your loan modifications and foreclosed property.

Hope this a help!
God bless!
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby yiska » Thu Jun 21, 2012 4:31 am

You can choose the term of the refinance

You only do it if you can save money. Say you started with a 30-year fixed rate mortgage of $150,000 at 5.5 percent but rates are now 4.5 percent. By refinancing at the lower rate, you would be able to save $91.65 on your monthly payments. the new mortgage will be 30 years again
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby fredrick38 » Thu Jun 21, 2012 4:34 am

If u can get at least 1.5% difference,
u can get your closing costs back shortly.

a refi restarts with new term.

visit any mortgage calculator on web.
to see what numbers u need.
u can choose a 10,15,20 or 30 yr term.
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby fitz » Thu Jun 21, 2012 4:44 am

If u can get at least 1.5% difference,
u can get your closing costs back shortly.

a refi restarts with new term.

visit any mortgage calculator on web.
to see what numbers u need.
u can choose a 10,15,20 or 30 yr term.
You can refinance to a lower rate, but your years will change from 30 to at least 50 years fixed mortgage rate.
Message from: CliffDweller
fitz
 
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If you refinance your home, do you have to start over at 30 year mortgage again?

Postby ismael » Thu Jun 21, 2012 4:55 am

you can get a 15 year mortgage.
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